Jyoti Structures Ltd

ANNUAL REPORT 2000-2001 JYOTI STRICTURES LTD. CHAIRMAN'S SPEECH AT THE 26TH ANNUAL GENERAL MEETING ON 21ST SEPTEMBER, 2001 Ladies and Gentlemen. It gives me great pleasure to welcome you all to this 26th Annual General Meeting of your Company. At the outset I would like to thank all investors for supporting the Company by subscribing to the successfully concluded Rights Issue. As a result of the Rights issue, the paid-up equity capital has gone up from Rs.4.91 Crores to Rs.8.69 Crores and Security Premium Account has gone up from Rs.2.95 Crores to Rs. 12.9 Crores. The Board has recommended dividend ( 25% on the expanded Capital base after Rights Issue. As stated in the Letter of Offer, the Company had estimated total income of Rs.260. 67 Crores and profit after tax of Rs.9. 60 Crores for the financial year 2000-2001. While the Company surpassed its sales forecast by achieving total income of Rs. 265.10 Crores, theprofit after tax was lower at Rs. 8.00 Crores because of pressure on margins resulting from highly competitive market situation. Overall performance for the year ended 31st March, 2001 can be considered satisfactory in view of slow down in the economy and delay in power sector reforms. On the Company's operations front, it gives me pleasure to inform you about some of the achievements of the Company . a) Company has obtained ISO - 14001 Certificate for its compliance on environment protection; b) Company's Export Turnover (including Deemed Exports)went up by 40% to over Rs.200 Crores. Exports constituted 76% of the Company's Sales. c) Company has been a Net Forex earner, d) Company has been producing consistently more than 40,000 MT of Transmission Line Towers parts for the second year in a row; e) Company has introduced performance linked HRD) practices and has also initiated effective Cost Control measures. The Company's order booking for the current year, is satisfactory. Barring unforeseen circumstances, the Company expects satisfactory performance and higher capacity utilisation in the current year. The share of sub-station division in the turnover is expected to go up. The Company's thrust on Exports continues. Currently, the Company is executing turnkey export contracts in Oman and Ethiopia and executing export orders from Chile, Senegal, Canada and Brazil. The Company's international competitiveness and competence is well recognised. The outlook for your Company and the transmission line industry in general appears to be quite optimistic. Subject to recent developments in US and global economy, the Company expects increased business opportunities in domestic and export markets. In spite of discouraging market situation in the ancillary industries such as refractories, the subsidiary, JSL Refractories Ltd. has continued its growth by showing a rise in Turnover from 4.45 Crores to Rs.5.81 Crores. The Management of JSL Refractories Ltd., with Mr. J.R. Panda as Managing Director is continuously monitoring the performance of this unit and is drawing suitable plans to make the Company profitable. During the year, Mr. S.A. Krishnan resigned from the Board but has consented to remain as an advisor to the Company for some time. I, on behalf of the the Board, would like to 121ace on record our appreciation of the services rendered by Mr. Krishnan during his tenure as Director of the Company. In the end, I would like to thank you all as also the employees, customers, bankers and financial institutions for their continued support and understanding. Thank you, S. D. KULKARNI CHAIRMAN Valecha Chambers, 5th Floor, New Link Road, Andheri (West), Oshiwara, Mumbai - 400 053. Tel : (91-22) 691-5000 Fax : (91-22 691-5014 E-mail : contact@.jyotistructures.com